This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following statements is MOST correct concerning the relationship between a company's ... (Read 55 times)

ts19998

  • Hero Member
  • *****
  • Posts: 531
on: Jul 10, 2018
Which of the following statements is MOST correct concerning the relationship between a
  company's cash budget and its income statement?
 
  A) If net income is positive, then cash flow must be positive.
  B) If net income is positive, then cash flow could be positive or negative, but if net income is
  negative, cash flow must also be negative.
  C) If net income is positive for 3 or more months in a row, then cash flow must be positive.
  D) Cash flow could be positive whether net income is positive or negative.

Question 2

Your family recently won the 10,000,000 lottery and chose to accept the annual payout plan of 500,000 today plus 19 more year-end cash flows of 500,000. If you discount these cash flows at an annual rate of 8.0, what is their present value?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

yahahah24021

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jul 10, 2018
Answer to Question 1

D

Answer to Question 2

Answer:
PV = PMT   (1 + r)1 = 500,000   (1.08)1 = 5,301,799.60.
Explanation: This is a 20-payment annuity due.


ts19998

  • Member
  • Posts: 531
Reply 2 on: Jul 10, 2018
Gracias!

Kedrick2014

  • Member
  • Posts: 359
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

The overlapping relationship among research, evidence-based practice The overlapping relationship among research, evidence-based practice
The relationship between number of acres a Kipsigis man owns and the number of offspring he has duri The relationship between number of acres a Kipsigis man owns and the number of offspring he has duri
The correct beginning position for the patient’s feet and crutches (tripod position). The correct beginning position for the patient’s feet and crutches (tripod position).
A dose-response curve describes the relationship between the quantity of the chemical entering the ... A dose-response curve describes the relationship between the quantity of the chemical entering the ...
The relationship between the permissible exposure limit (PEL), the short-term exposure limit (STEL), ... The relationship between the permissible exposure limit (PEL), the short-term exposure limit (STEL), ...
A company that sells sweatshirts finds that the profit can be modelled by P(s)= ... A company that sells sweatshirts finds that the profit can be modelled by P(s)= ...
Video: Automated external defibrillator (AED)

For a complete list of videos, visit our video library